NYSE$UHT

Universal Health Realty Income Trust · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported net income and FFO increased, but vacancies at two hospital facilities and the impact of COVID-19 created uncertainty.

Universal Health Realty Income Trust reported an increase in net income and FFO for the first quarter of 2020 compared to the same period in 2019. The company's net income was $4.6 million, or $0.33 per diluted share, compared to $4.2 million, or $0.31 per diluted share, in Q1 2019. FFO was $11.2 million, or $0.82 per diluted share, compared to $11.0 million, or $0.80 per diluted share, in Q1 2019. However, vacancies at two hospital facilities and the emerging impact of COVID-19 created some financial headwinds.

  • Net income increased to $4.6 million, or $0.33 per diluted share, compared to $4.2 million, or $0.31 per diluted share, in Q1 2019.
  • FFO increased to $11.2 million, or $0.82 per diluted share, compared to $11.0 million, or $0.80 per diluted share, in Q1 2019.
  • A decrease in interest expense of $383,000 favorably impacted net income and FFO.
  • Vacancies at two hospital facilities in Corpus Christi, Texas, and Evansville, Indiana, unfavorably impacted net income and FFO, resulting in a combined net operating loss of $198,000.

Headline financials

Total Revenue

$19.2M

Previous: $19.1M+0.5%
EPS (adj)

$0.33

Previous: $0.29+13.8%
Dividend Paid Per Share

$0.69

No prior period
Funds From Operations

$11.2M

Previous: $11M+2.4%
Free Cash Flow

$4.55M

Previous: $4.21M+8.1%
Net Income

$4.55M

Previous: $4.21M+8.1%
Operating Income

$6.43M

Previous: $6.22M+3.3%
Gross Profit

$19.2M

Previous: $19.1M+0.5%
Cash & Equivalents

$5.67M

Previous: $6.03M-6.1%
Total Assets

$489M

Previous: $489M+0.0%
Stock-Based Comp

$197K

Previous: $159K+23.9%

Revenue & EPS history

UHT · Revenue · Quarterly

$19.2M

Q1 2020+0.5%vs Q1 2019

Revenue by segment

UHT · $18.7M total across 2 segments · Q1 2020

  • Non-related parties
    $12.8M
  • UHS Facilities
    $5.88M

Forward guidance

The COVID-19 pandemic is expected to have a material adverse impact on future financial results due to factors beyond the company's control.

Tailwinds

  • Most tenants in hospitals, MOBs, and ambulatory care centers are permitted to continue operating.
  • A new, 122-month lease was fully executed with a third-party tenant for approximately 26,000 rentable square feet on the first floor of the MOB in Denison, Texas.
  • The master flex lease commitment was reduced to 20,000 of rentable square feet on the third floor of the MOB.
  • Construction of the behavioral health care hospital in Clive, Iowa, is expected to be completed in late 2020 or early 2021.
  • The credit agreement has an option to extend the maturity date for up to two additional six-month periods.

Headwinds

  • Patient volumes at acute care hospitals and other healthcare properties were significantly reduced in the second half of March due to COVID-19.
  • Tenants representing approximately 13% of the aggregate rentable square feet under lease at MOBs had not yet paid their April rent.
  • Short-term rent deferral requests were received from approximately 13% of the aggregate rentable square feet under lease at MOBs.
  • The pre-school/childcare centers are currently closed due to governmental regulations, and April rental payments have not been received.
  • There may be significant declines in future bonus rental revenue earned on hospital properties leased to subsidiaries UHS to the extent that each hospital continues to experience significant decline in patient volumes.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.0%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+1.0%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+12.7%

Q1 2020

Best reaction

-6.8%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.9%-0.8%
Q4 2025+0.2%-0.7%-9.7%
Q3 2025+2.1%+4.9%+12.7%
Q1 2025-0.5%+1.7%+2.2%
Q4 2024+0.8%+1.9%+3.0%
Q3 2024-2.9%-4.6%-2.2%
Q2 2024+2.5%+1.6%+5.1%
Q1 2024+0.8%+5.8%+10.1%
Q4 2023+0.2%-4.1%-9.7%
Q3 2023+1.1%-0.9%+3.4%
Q2 2023-3.4%-3.7%-5.2%
Q1 2023-5.9%-6.5%-8.3%
Q4 2022-1.5%-5.8%-11.9%
Q3 2022+5.3%+8.8%+15.6%
Q2 2022+2.3%+2.8%-0.1%
Q1 2022-3.1%-11.1%-7.3%
Q4 2021+1.2%+4.2%+3.4%
Q3 2021+0.5%-0.6%+2.2%
Q2 2021-0.7%-1.8%-3.7%
Q1 2021+0.2%-3.0%-0.0%
Q4 2020-6.1%-6.3%+7.8%
Q3 2020-2.3%+2.7%+14.5%
Q2 2020+0.7%+3.2%-0.1%
Q1 2020+12.7%+9.9%+5.9%
Q4 2019-6.6%-8.1%-21.6%
Q3 2019+3.7%+8.4%+0.7%
Q2 2019+1.6%+3.2%+5.6%
Q1 2019+3.8%+3.7%+8.0%
Q4 2018+0.3%+0.2%+1.1%
Q3 2018-6.8%-11.2%-6.2%
Q2 2018+0.8%+4.4%+15.6%
Q1 2018+4.1%+2.0%+3.1%
Q4 2017+3.0%+6.4%+8.6%
Q3 2017-0.8%-2.9%-0.2%
Q2 2017-5.6%-6.7%-10.0%
Q1 2017+0.3%+0.9%+3.0%
Q4 2016-0.1%-1.3%+0.5%
Q3 2016-4.1%-5.8%-0.3%
Q2 2016-1.1%+0.7%+3.5%
Q1 2016-1.5%
Q4 2015+0.6%
Q3 2015-0.1%
Q2 2015+0.7%
Q1 2015-2.3%
Q4 2014-0.7%
Q3 2014+1.4%
Q2 2014-1.1%
Q1 2014-0.2%
Q4 2013+1.6%
Q3 2013+1.9%
Q2 2013-0.5%
Q1 2013-1.9%
Q1 2011-0.2%
Q4 2012+1.7%
Q3 2012-1.7%
Q4 2011-1.0%
Q2 2012-1.0%
Q1 2012+0.6%
Q4 2009-1.2%
Q3 2010+0.0%
Q3 2011+0.0%
Q2 2011+0.3%
Q4 2010+0.3%
Q2 2010+0.3%
Q1 2010+4.0%

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